HomeMy WebLinkAbout11E - Dev. Program Dist. #5
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
MEETING DATE:
AGENDA #:
PREPARED BY:
AGENDA ITEM:
DISCUSSION:
CITY COUNCIL AGENDA REPORT
January 3, 2006
11 E
PAUL SNOOK, ECONOMIC DEVELOPMENT DIRECTOR
CONSIDER APPROVAL OF A RESOLUTION CALLING FOR A
PUBLIC HEARING ON THE ESTABLISHMENT OF THE
DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.5;
THE PROPOSED ESTABLISHMENT OF TAX INCREMENT
FINANCING DISTRICT NO. 5-1; THE PROPOSED ADOPTION OF
THE TAX INCREMENT FINANCING PLAN THEREFOR, AND ON THE
PROPOSED AWARDING OF A BUSINESS SUBSIDY.
Introduction
City Council is asked to call for a public hearing for the establishment of Tax
Increment Financing District No. 5-1 for the purposes of assisting in the
redevelopment of lot 13, Block 13 & lot 14 & west 12' of lot 12 (4616
Colorado St.) in the downtown area, for the future location of Premiere Dance
Academy (PDA). This action does not oblige the City Council to approve this
request but only to conduct the public hearing.
History
The property contemplated for the new building is located at 4616 Colorado St.
The property includes a house that is severely blighted, boarded up and a
prime candidate for redevelopment. The structure has been inspected and
meets the statutory definition of blighted property.
PDA is a local based dance academy offering a comprehensive program and
excellent training in dance technique, teamwork and performance quality. The
academy has over 600 members. PDA has outgrown its current facility at
16210 Eagle Creek Ave (the Library Resource Center). Over the last year PDA
owner Dawn Schulberg has been seeking larger space in Prior lake. She has
evaluated property at Anna Trail and TH 13 and Adelmann and CSAH 21, both
of which are outside the downtown area. In keeping with the downtown
revitalization and economic elements of the 2030 Vision and Strategic Plan, we
would like to revitalize a severely blighted property and keep the dance facility
downtown.
Ms. Schulberg has purchased the 4616 Colorado St property from IVEX. IVEX
was considering redevelopment of the property into office and commercial
space, but opted to sell and bid on the Main and Hastings property.
Current Circumstances
PDA needs additional space for expansion and is proposing to construct a two
story approximately 10,000 sq ft building on lot 13, Block 13 & lot 14 & west
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. RfmiRl"la~;S$?m,
Phone 952.447.4230 / Fax 952.447.4245
ISSUES:
C:\Documol1ts and
12' of lot 12 (The property is currently zoned R-2, with the 2030
Comprehensive Land Use Plan calling for that parcel to be designated as C-
TC (Town Center). On December 1, 2005 the DRe discussed initial plans for
the proposed PDA. The applicant has been provided with a letter including
(Building, Planning, and Engineering) comments and the portion of the Code
that details the downtown district regulations. PDA is in the beginning phase
with the site layout and will continue to meet with staff / DRC (regarding
building elevations, etc.) to advance the project. PDA has submitted
preliminary and full applications for TIF, and has paid the required TIF fee of
$12,000.
The applicant has attained approval of private bank financing of $1,190,000 for
purchase of the property and construction of new dance studio facility. The
applicant is requesting $135,000 in TIF funds for site development (demolition
/ clearance). The city's financial consultant Ehlers & Associates has completed
a preliminary review of the project and has deemed it eligible for TIF.
Furthermore, the project / applicant has received a favorable review of the
"but/for" test and analysis which was completed among the applicant, staff and
Ehlers. A requirement of TIF is that the municipality must essentially find that
the proposed TIF assistance is necessary to bring about the proposed
development.
In order to further this development request it is necessary to call for the public
hearing via approval of a resolution, and for staff and Ehlers & Associates to
develop a plan for Development District No.5, and establish TIF District No. 5-
1 , which is the subject parcel. The applicant plans on starting demolition and
construction as soon as possible, contingent upon City approvals of the site I
building plan and TIF.
Conclusion
The City Council should determine if it desires to consider using tax increment
financing for this redevelopment project. If the Council wishes to proceed, it
should, by resolution, set a public hearing date.
In accordance with the application process, this agenda item also represents
the concept review of this proposal. This action is being taken in consideration
of the applicant's building program and in an effort to assure that the 2006 city
council addresses all steps in the process rather than "inheriting" an item from
the 2005 city council.
The key issue for the council to consider for this agenda is whether to
schedule / call the public hearing. Scheduling a public hearing does not oblige
the council to approve the TIF request. Prior to conducting the public hearing,
the council will receive a Tax Increment Financing Plan which will contain
detailed information about the project together with an analysis showing how
the project complies with the City's Tax Increment Financing Policy and
Business Subsidy Policy.
The cost of preparing the TIF Plan documents through the City's financial
advisor is significant, so if the council is inclined to not favor the request based
upon the information provided, it would be appropriate to provide further
DOCllrnents\TIF
- Tlr Dist 5~1 (1-03-
CITY OF PRIOR LAKE
COUNTY OF SCOTT
STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION CALLING FOR A PUBLIC HEARING BY THE CITY COUNCIL
ON THE PROPOSED ADOPTION OF THE ESTABLISHMENT OF THE
DEVELOPMENT PROGRAM FOR DEVELOPMENT DISTRICT NO.5; THE
PROPOSED ESTABLISHMENT OF TAX INCREMENT FINANCING DISTRICT
NO. 5-1; THE PROPOSED ADOPTION OF THE TAX INCREMENT
FINANCING PLAN THEREFOR, AND ON THE PROPOSED AWARDING OF A
BUSINESS SUBSIDY.
BE IT RESOLVED by the City Council (the "Council") for the City of Prior Lake, Minnesota (the
"City"), as follows:
Section 1. Public Hearing. This Council shall meet on March 6, 2006, at approximately 7:00
P.M., to hold a public hearing on the proposed establishment of the Development Program for
Development District No.5, the proposed establishment of Tax Increment Financing District No. 5-1, (a
redevelopment district), the proposed adoption of a Tax Increment Financing Plan therefor, and the
proposed awarding of a business subsidy, all pursuant to and in accordance with Minnesota Statutes,
Sections 469.124 to 469.134, and Sections 469.174 to 469.1799, inclusive, as amended, and Minnesota
Statutes, Sections 116J.993 through 1161.995 in an effort to encourage the development and
redevelopment of certain designated areas within the City; and
Section 2. Notice of Public Hearing, Filing of Program and TIP Plan. City staff is authorized and
directed to work with Ehlers & Associates, Inc., to prepare the establishment of the Development
Program for Development District No.5, and the Tax Increment Financing Plan for Tax Increment
Financing District No. 5-1, and to forward documents to the appropriate taxing jurisdictions including
Scott County and Independent School District No. 719. The City Clerk is authorized and directed to
cause notice of the hearing, together with an appropriate map as required by law, to be published at least
once in the official newspaper of the City not later than 10, nor more than 30, days prior to March 6,
2006, and to place a copy of the Program and Plan on file in the City Clerk's office at City Hall and to
make such copy available for inspection by the public.
Dated: January 3, 3006
Adopted:
Mayor
A TIEST:
City Clerk
DRAFT -- SCHEDULE OF EVENTS
CITY OF PRIOR LAKE
FOR THE ESTABLISHMENT OF THE DEVELOPMENT PROGRAM
FOR DEVELOPMENT DISTRICT NO.5
AND THE ESTABLISHMENT OF THE TAX INCREMENT FINANCING PLAN
FOR TAX INCREMENT FINANCING DISTRICT NO. 5-1
(a redevelopment district)
AND THE PROPOSED AWARDING OF A BUSINESS SUBSIDY
December 19,2005
January 3, 2006
January 3, 2006
January 4, 2006
---,2006
January 19,2006
January 20, 2006
February 3, 2006
February 18, 2006
February 27,2006
March 6, 2006
,2006
,2006
Conference call with the City, attorneys, and Ehlers regarding the
establishment of Tax Increment Financing District No. 5-1.
Ehlers presents TIP Basics to the City Council.
City Council calls for public hearing on the establishment of the
Development Program for Development District No.5, the establishment of
Tax Increment Financing District No. 5-1 and the awarding of a business
subsidy.
Project information (property identification numbers and legal descriptions,
detailed project description, maps, but/for statement, and list of sources and
uses of funds) for drafting necessary documentation sent to Ehlers &
Associates. Ehlers & Associates confirms with the City whether building
permits have been issued on the property to be included in TIP District No.
5-1.
Meeting with County regarding project.
Letter received by County Commissioner glvmg notice of potential
redevelopment tax increment financing district (at least 30 days prior to
publication of public hearing notice). [Ehlers faxes and mails on January
17, 2006J
Project information submitted to the County Board for review of county road
impacts. [Ehlers faxes & mails on January 18, 2006J
Fiscal/economic implications received by School Board Clerk and County
Auditor (at least 30 days prior to public hearing). [Ehlers faxes & mails on
February 1, 2006J
Date of publication of hearing notice and map (at least 10 days but not more
than 30 days prior to hearing). [Prior Lake American publication deadline
February 13, 2006J
Planning Commission reviews Program and Plan to determine if they are in
compliance with City's comprehensive plan.
City Council holds public hearing at 7:00 P.M. on the establishment of the
Development Program for Development District No.5, the establishment of
Tax Increment Financing District No. 5-1 and the awarding of a business
subsidy and passes resolution approving the Program, Plan, and awarding of
a Business Subsidy. [Ehlers e-mails council packet info. to the City by
February 27, 2006J
City authorizes Ehlers to request certification of the TIP District.
Ehlers & Associates requests certification of the TIP District from the state
and county.
-Business Subsidy Criteria along with the next annual report need to be submitted to the MN Department of Employment
and Economic Development.
---''1"...'"-.---''-'--'
** The County Board, by law, has 45 days to review the plan to determine if any county roads will be impacted by the development.
Please be aware that the County Board could claim that tax increment should be used for county roads.
An action under subdivision 1, paragraph (a), contesting the validity of a determination by an authority under section
469.175, subdivision 3, must be commenced within the later of:
(1) 180 days after the municipality's approval under section 469.175, subdivision 3; or
(2) 90 days after the request for certification of the district is filed with the county auditor under section 469.177,
subdivision1.
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CITY OF PRIOR LAKE, MINNESOTA
APPLICATION FOR TAX INCREMENT FINANCING
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11-8-2005
F rank Boyles
City Manager
City of Prior Lake
16200 Eagle Cr Ave SE #101
Prior Lake MN 55372
Re: 4616 Colorado St SE, Prior Lake MN 55372
Dear Frank,
Attached please find a preliminary map showing the boundaries of the proposed development.
The project I am proposing for this site will be a dance studio. Estimated size is approximately 10,000
square feet which will utilize the majority of the lot. The estimated cost for the structure is $980,000.
Public parking is available across the street.
I am requesting tax increment financing to assist in the financial burden of removing the blighted
existing house and to redevelop the site into a commercial property, resulting in increased economic
development and future employment.
The general contractor for the proposed project is Deutsch Construction, 3105 LeRoy Ave, P.O. Box
127, New Prague MN 56071. Project Manager Mike Solheid, 612-685-1480.
(i) r.l1~
~LUlt
Dawn Schulberg
Premiere Dance Academy
16210 Eagle Cr Ave SE #101
Prior Lake MN 55372
16210 Eagle Creek Ave #101 *952-447 -5788*www.premleredanceacademy.com*premieredance@integraonline.com
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16200 Eagle Creek Avenue S.E.
Prior lake, MN 55372-1714
CITY OF PRIOR LAKE
PRE-APPLICATION
FOR FINANCIAL ASSISTANCE
Name of contact person:
'DOJ1)n SchlL [b.e.rG-
L{ [; I & Color ad 0 S -r Lot I?J f31 ocK- /3
jSd-'- l/Yl- S,8'8
J)JLun Sf\ru l!b2rG-
Legal name of applicant:
Address:
Telephone number:
REQUESTED INFORMATION:
Addendum shall be attached hereto addressing in detail the following:
1. Type of financial assistance requested:
~ Tax Increment Financing
Tax Abatement
Cash Contribution
Low Interest Loan
Other:
~ 2. A map showing the exact boundaries of proposed development.
~. ---
3. Give a general description of the project including estimated cost, size and
vfocation ofbui1ding(s);~siness type or use; traffic information including~.
parking, projected vehicle counts and traffic flow; timing of the project; estimated
market value following completion. Indicate why and for what purpos~
financial assistance is requested.
./4. The existing Comprehensive Guide Plan Land Use designation and zoning of the
property. Include a statement as to how the proposed development will conform
to the land use designation and how the property is or will be zoned.
v{.. A statement identifying how the assistance will be used and why it is necessary to
undertake the proj ect.
~6. A statement identifying the public benefits of the proposed project including
estimated increase in property valuation, new jobs to be created and other
community assets.
R:\EDA\tifpre-application.doc
I
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
7. A written perspective of the developer's company or corporation, including
principals, history and past projects.
Date:
iQ,WIJ szkluL~
II \Lt D::)
SIGNATURE:
Applicant's Signature:
R:\EDA \tifpre-application.doc
2
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16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
CITY OF PRIOR LAKE
APPLICATION FOR FINANCIAL ASSISTANCE
GENERAL INFORMATION:
Business Name: p( e \'\') \;f~ en (W k.a~ Dale: Jlj Lf Io:s
Address: l.WJ 0 F n ~ (' ~ Jw ~~- ~ 10 I Pi tD r Let te SS37;;L.
Type (partnership. etc.): Ll, G
Authorized Representatives: .CD ~\~. SchuJ ~~(,G-I Cruun Sch.ttlbe-rG-
Authorized Representative: CcLLLU ~ \r\,.u.lbelG- Phone:CfSd 4lt7-S,g8
Description of Business: en n tQ. S-+.U clLD
Legal Counsel:
Address:
Phone:
.........................................................................
FINANCIAL BACKGROUND:
1. Have you ever filed for bankruptcy? 10'0
2. Have you ever defaulted on any loan commitment? t\J t>
3. Have you filed for conventional financing for the project?~t.S>
rnO r l J( ~ S~ &o/fl t. ~ CD () rnrf-tson
4. List financial references: a. ~r;Js0' - At)f0 ~lim~rD
b. (lS f6<1YI ~
c. .=tkP-
5. Have you ever used Tax. Increment Financing or any form of public financial
assistance before? If yes. where and when and for what project?
}JD
R:\EDA \tifapplication.doc
I
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447..4245
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PROJECT INFORMATION:
1. Location of proposed project: q.t., I (, eolo ~ cJ S} Prio r ~'I:e. f\.-"\N
, I
2. Amount of assistance requested? jJ 1M, f){)O ?
3. Need for assistance: &dt()dc/l7U11f J fln1O<t( Of .rlrwcfUt-R
4. PresentoWnershipofsite:~'I<;' fl.noV'\e..yl Sell",",] .Jo thW^ f~k""\l,V":)o.~fc.
a. ~" }.:
5. Number of permanent jobs created as a result ofproject:
( ?-oc r.-/ )
6. Estimated annual sales: Present: ~ L/~. I ~ j' Future: 1 \0 000
. J
~
7. Market value of project following completion: l. \ """-; \ \. 0__
8. Name and address of architect: [)l/..[fSch (!Ons/ru rft()~
GtJ1JAM f?01?frtfcfor
9. Anticipated state date: .~ J \ I c l..,
Completion Date: q I. I e ~
.........................................................................
FINANCIAL INFORMATION:
1. Estimated project related costs:
a. Land acquisition $ :J.OO,()Ot>
b. Site development /':$ S'", (lO()
c. Building cost '110;' dOh
d. Equipment
e. Architectural/engineering fee
f. Legal fees
g. Off-site development costs
2. Source of financing:
a. Private financing institution $ I. Ir () IJ f7drJ
b. Tax increment funds 'J3'!>.otJ't}
.
c. Other public funds
d. Developer equity - 7
R:\EDA \tifapplication.doc
2
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PLEASE INCLUDE:
1. Preliminary financial commitment from bank
2. Plans and drawing ofproject
3. Background material of company
4. Pro Forma analysis
5. Financial statements
6. Statement of property ownership or control ~
7. Payment of application fee ($12,000.00) *
( '" \ ").
'(.. to", I,^"
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* The application fee is a deposit provided by the applicant to defray City costs
associated with the evaluation, preparation or approval of the requested assistance. City
costs include but are not limited to out of pocket expenses, staff time, legal fees,
consultant costs, audits or other associated costs. Once the Council has acted upon the
request, any funds not utilized as set forth above will be reimbursed to the applicant. If
City costs exceed the $12,000.00 deposit the applicant will be asked to reimburse such
amounts to the City.
R:\EDA \tifapplication.doc
3
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Scott County Property Lard
rage 1 01 1
Address:
City /State/Zip:
Parcel Address
4616 COLORADO ST SE
PRIOR LAKE MN 55372
Owner:
Address:
City /State/Zip:
Owner Information
ROONEY,CHRISTOPHER
5500 COTIONWOOD LN
PRIOR LAKE, MN 55372
Property Information
Parcel ID Number: 250011030
Deeded Acres: 0
GIS Acres: 0.22
Plat: !1J PLAT-25001 CITY OF PRIOR LAKE
Lot: 13
Block: 13
CITY OF PRIOR LAKE Lot-013 Block-013 &
Legal Description: LOT 14 & W 12' OF LOT 12
Model Type:
Year Built:
Architectural
Style:
Foundation Size
(Sq Ft):
Garage Size (Sq
Ft):
Bedrooms:
Bathrooms:
Complex Property:
Building Characteristics
RES
1920
1 1/4STRY
r&ou
N
W.F.
"
1016
This drawing is neither a legally recorded map nor a survey and Is not Intend!
to be used as one. This drawing is a compilation of records, information, am
data located in various city, county, and state offices, and other sources
affecting the area shown. Scott County is not responsible for and Inaccuracle
herein contained. If discrepancies are found, please contact the Scott Count-
Survevors Office.
480
4
1
Taxing District Code:
Township/City Code:
School District Code:
Net Taxes:
Net Taxes plus Special Assessments:
First Half Payment:
Homestead Status:
Exempt Status:
Ag Preserve:
Tax Information
Taxing District:
Township/City:
PRIOR LAKE CITY
25
2001
25
719
$0
$0
$0
N
Special Assessments:
Outstanding Special Assessments:
Second Half Payment:
Homestead Classification:
Green Acres:
$0
$0
$0
RES 1 UNIT
Land:
Green Acres:
Property Value
$ 50000 Building:
$ 0 Total:
$ 121500
$ 171500
Sale Date:
Sale Information
09/26/2003 Sale Price:
$164000
.-,'
http://www.co.scott.mn.us/gis/ common! asp/printParcelSummary. asp ?thePin=2500 11030
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survey and is not intended to be used as one. This
drawing is a compilation of records, information, and
data located in various city, county, and state offices,
and other sources affecting the area shown, and is to be
used for reference purposes only. Scott County is not
responsible for any inaccuracies herein contained. If
discrepeancies are found, please contact the Scott
County Surveyors Office.
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